SimCorp: Sustainable double-digit growth within reach - Berenberg says "buy"

SIMCORP A/S

13/01/2021 09:41

** Berenberg starts coverage of SimCorp  SIM.CO , a Danish IT
company that offers integrated investment management software
products, with a "buy" rating and a DKK 1,075 price target 
    ** The broker expects SimCorp to benefit from the long term
trend of firms shifting their technology spend from point
solutions to front-to-back systems 
   ** Berenberg believes the company is able to achieve a
sustainable double-digit topline growth in the long run,
pointing to market share gains for SimCorp Dimension and
improved cross-selling of front-office modules 
   ** It sees revenue from both new and add-on licences to
improve at double-digit rates
    ** Berenberg says client demand for the software company's 
products and services in the cloud is likely to increase in the
long term following the COVID-19 pandemic
    ** It notes the cloud transformation that SimCorp is
conducting requires incremental R&D cost, but in its view, it
builds competitive advantages
    ** Excluding Berenberg, among the seven analysts that cover
SimCorp, the breakdown of recommendations is one "buy", two
"hold" and four "sell" or "strong sell" with mean TP of DKK 753

 ((Aleksandra.Majewska@thomsonreuters.com))